Often Partisan

Football League Statement

The Football League have issued a statement with respect to Birmingham International Holdings going into receivership, having now met with Ernst and Young.

The statement reads as follows:

The Football League can confirm that it has met with representatives of Ernst and Young, the Receivers of Birmingham International Holdings Limited, the ultimate parent company of Birmingham City. Representatives of the Club were also present at the meeting.

The Receivers made it clear that they do not believe that their appointment, in Hong Kong, should be considered as an ‘insolvency event’ under Football League regulations and have undertaken to work in a transparent manner with The Football League so as to enable the League’s Board to consider the matter at the earliest possible opportunity.

The Football League also received confirmation that no funding will be withdrawn from Birmingham City and that sufficient funds are available to ensure that the Club can complete the 2014/15 season.

At this moment no confirmation has been given as to whether points are to be deducted but I would say from the positive tone of the statement it seems unlikely at this time.

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43 Responses to “Football League Statement”

  • rhees says:

    Sounds promising

  • zxcv says:

    This has to be seen as very encouraging news, They can`t rule anything in or out at this point or until (as the announcement says) the board have considered it. Would be good to know when that might be but I noticed it also said “at the earliest possible opportunity” could that mean we are trying to sell sooner rather than later……. just a thought.

  • Eric says:

    Thanks Dan…fingers crossed

  • Dave Mann says:

    IF we got 10 points deducted and stayed up then under the circumstances this would be an amazing season and would shut a lot of people up which would be real nice … IF not then we will be ok !! Kro

  • Marky mark says:

    Sounds very promising, but im waiting for the next instalment as bad news seems to quickly follow good news at the moment. Talk about roller-coaster ride

  • Dave Mann says:

    Thanks for taking my post off when it was sufficient to the circumstances ….any way I think 10points deducted or not we will still be in this league next season . Ktf & kro

    • almajir says:

      Dave

      No post has been deleted. When will people listen to me that sometimes things don’t go through straight away? I keep saying this and no one listens to me and it’s annoying me – I’m not here 24/7 to moderate people’s comments – comments on this site are a privilege not a right and it is a privlege I can take away should I see fit.

  • Oldbluenose says:

    The 1st, positive signs for a couple of days, — Thank God.

  • Adam McDermott says:

    I think this at least means that at the moment we’ll not be docked 10 points. However, with all the farcical goings on in HK I can’t but wonder how long it’ll be till the FL have to decide that with no money from BIHL then it’ll only be a matter of time till BCFC’s money runs dry.

    • zxcv says:

      Adam, Lets just get over this Season, The Statement confirms we are okay for funds at least until the end of the season. And to be honest if it meant new owners with some good funding I would reluctantly take the 10 points deduction next season. I am feeling quite positive but cautious at the same time. I believe CY`s actions are those of a desperate man and is being given enough rope.

    • chris says:

      Why should there be money from BIHL, BCFC need to create their own revenue which they are.
      BCFC is BIHL.
      The club needs to be self sufficient just like many other clubs, Burnley didn’t have an owner putting in millions so why should Blues.

  • Mike says:

    I’m not sure why people are being so positive about this statement as it doesn’t actually say anything other than it is the opinion of the receivers that their appointment does nor constitute an insolvency event, that no funds will be withdrawn and that the club can complete the season, well they would say that wouldn’t they? They are not likely to be saying anything that would possibly encourage the FL to deduct points.
    The FL Board has not yet sat to consider the case.
    Fingers crossed though.

    • Nick says:

      This statement is from the Football League not the club…

      • Mike says:

        Nick, yes the statement is from the Football League but they are only confirming / stating what they have been told by Ernst & Young, they have not yet confirmed whether they consider recent events constitute an insolvency event or not, that will be decided when the Football League Board convene to consider the case.

  • Dave Mann says:

    Obviously!!! Kro

  • DoctorD says:

    Good. Something positive to hang onto over the weekend – till the next instalment of this farce.

  • Eveshamblue says:

    The first priorIty is for GR to turn things round on the pitch after a slump of form. I have total faith in him. It seems Morrison and Davis injury have hit us bad. Shipping goals to readily. Still I’m taking this as a positive a no points deducted statement at this point from the auditors. We would have gone down with 10 points off with recent form.

    There is a Blue Sky and I am convinced after this season is over we will start to rise again. We have been thru far far darker times Bluenoses. This is chicken fodder in comparison. Get rid of the toxic scum. I would like to put on record I would like to thank Panos and his team (beforehand even) for steering us thru choppy waters! KRO till the end of the road (it’s coming sooner or later…)

    • Paul Hawkins says:

      I have to agree with you that we have been thru worse times than this. I doubt very much the younger generation of bluenoses would remember but it was the time prior too David Sullivan etc. Who can forget the farce of the Kumars.

  • Ian Ambrose says:

    NO WAITING TOO LONG !!! MUST SELL BCFC CLUB NOW now now now BEST WAY switch off to carson in china he in jail 6 years finish now!!! MUST SELL CLUB NOW !!!!!!! NO MORE WAITING TOO LONG….Finger cross MUST SELL BCFC CLUB NOOOOWWWWWWW Dont let blues fans and player also manager!!!!!

  • Discopete says:

    Could it be that the Receivers being called by the board is because they want their investment back? And the only way they are going to get it is if Blues are sold? Does CY want to hang on to Blues purely for kudos and a pension when he gets released?

  • mark says:

    in my imo it was never in doubt load of scaremongers…….. the real big issue is the next two homes games….otherwise it will be 10 games with nothing

    • almajir says:

      Mark

      What was never in doubt? No decision has been made yet – did you see a decision in that statement? I saw an inferrence but not a decision…

  • mark says:

    i wonder if the fear factor will play on the players when clark back in the city…….you could never rule out a possible double could you…….funny old game football………

    • Shirley Blue says:

      Why do I get the feeling you would like Blackpool to win next week Mark?

      • mark says:

        shirley they are just my thoughts……hopefully i am looking at two wins for blues……but you can never say never can you…for the blackpool game this will depend on which players turn up on the night…….if it any thing like the bloomfield game or shall we blame the pitch??? or maybe clark will get his own tactics wrong…. maybe GR will have the strongest team by then with the injury players returning??
        i have no need to mock clark may the best team win……

      • mark says:

        my further point i would be more concerned about brentford attacking threat this weekend with 42 shots on goal before they hammered blackpool 4-0 there no such thing as easy games….
        It appears GR will probably revert back to a lone striker so 451 at home will this be for one game or two??

  • Lea Village Blues – Happy Obafemi Martins Day !!!! We are who we are because of who we are! “Get Down to St.Andrews Tomorrow – if you can afford it in ‘Austerity’ racked Britain.
    Keep The Faith – support GR his team and the players.

    I just Hope that this is the positive news we have needed for some time now.
    KRO!

  • PS: Thanks for the hard work and information Dan !!’, KRO!

  • AussieBlue says:

    Mates, now you know why outfits like E&Y charge the fees they do! Smart cookies.

  • AussieBlue says:

    BTW Dan – I have been trying to figure out the 5-page ‘advertisement’ in the Hong Kong Standard, reproducing Carson’s letter and calling for an EGM on March 12th. Your previous cryptic comment was illuminating.
    I have arrived at 3 scenarios:
    1) It’s a forgery – a false document purporting to come from BIHL when it does not. It is still not listed as an official HKSE announcement and yet is of extreme market significance, Carson is not an officer of the company and has ‘convened’ this meeting ‘By Order.’ It was published in order to bring this to the attention of a wider business investor audience, and/or to serve as future reference in any potential legal proceedings.
    2) It’s a piss-take. Someone wants to show just how ridiculous the Carson/Pannu putsch is.
    3) Carson is going stir crazy, poor man. He’s going like Adolph in ‘Downfall’

    There’s probably 4th or 5th scenarios but I’m not on the case and have no idea what they may be.

    • chris says:

      imo he is trying to gain contact with other shareholders to gain 51% of the vote as the receiver will not give him the shareholder list he asked for.

    • almajir says:

      Carson is perfectly within his rights to call an EGM as a large shareholder. If BIH do not hold it for him, he can force them to via the courts. This failed. However, he’s gone ahead anyway and will hold this EGM. The chief question is how legal it is; CY thinks it is legal, BIH/EY think it’s not.

      Interestingly, I was reading some of the case law about receivers in this situation and there has been precedent where a company has had two boards, each purporting to be the valid directors. The way it was sorted out was via court-appointed receivers; the appointment of EY was a pre-emptive move and I suspect that they will be the ones to advise the court which way to rule.

  • BlueFan100 says:

    I don’t want to burst anyone’s hopes but I don’t see this as good news.

    All Ernst and Young have done is to confirm the position that BIH is not insolvent, and it appears critically have said they won’t withdraw loans made to the club so that the club can have sufficient funds to compete this season.

    From a Football League perspective that is the only test that currently has to be passed. It is their Doomsday scenario that a club goes bust during the season as all results need to be wiped out. Imagine how Bournemouth would feel about that.

    Given that E&Y have said that BIH is still solvent, then as I have said before their primary responsibility is to the shareholders and ultimately for any sale they will need their consent. That does not look likely to be achievable. Given BIH can’t now take any loan money back form the club, and that E&Y’s costs will be mounting up, the chances that BIH become insolvent in the near future is high. If that happens a minimum 10 point deduction is mandatory and the club will be a fire sale with absolutely no guarantee that it ends up in good hands.

    Importantly it is my understanding that all Football League teams have to submit their financial plans for next season in March. I am at a loss to see how the club can submit anything that will satisfy the Football League that it can compete in the 15/16 season (in any league). We know we don’t have revenue from parachute payments, we know that the parent company is suspended from trading, burning cash, and therefore incapable of putting funds into the club. Where does the money come from for next year.

    BCplc is not in receivership. Panos, Ma, Ryan Yeung as Directors are all able to comment on this and I think owe us an answer – where is the money coming from for the future? Dan you said you would ask Panos – did you get any response?

    We know that approaches have been made to buy the club over the last year. Whilst Carson may not want to sell, if he did not control the Board and they thought it was in the best interest to sell the club why did they not force it through? They didn’t need E&Y to do that.

    • Hillfield Blues says:

      Agree with some of your points but shouldn’t it also be a priority of EY as receivers to safeguard BIH from insolvency and protect its interests as opposed to being part of the problem. Their remit surely has to be to oversee the sale of the club and not to hang around for that long that it sends us into administration and points deductions,that would make their involvement completely detrimental to BIH and BCFC.

      • BlueFan100 says:

        I think this is a real catch 22 – while BIH is solvent E&Y must safeguard the shareholder interests (and Carson clearly will not allow a sale). You are absolutely right that E&Y have an obligation to try to keep the company solvent. ONLY if BIH becomes insolvent can E&Y force a sale of the club as their duty is then to creditors BUT if that happens the club will be penalised by the Football League and the value of it is dramatically reduced.

        E&Y earn fees whatever happens so to a degree they are immune to whatever the outcome. Because they are in place BIH can’t raise funds so as to provide funding for 15/16 and in this regard I do see their appointment as part of the problem.

        • AussieBlue says:

          BlueFan – what makes you think that a sale is only possible if BIHL becomes factually insolvent? The old board were trying to sell the club while BIHL was solvent and now they have handed management of the company over to E&Y, why can’t E&Y do exactly the same?

          • BlueFan100 says:

            Aussie Blue : Two reasons – first, and primarily, while BIH is solvent that E&Y have to act for shareholders and I don’t think that they will get approval from shareholders for a sale. And secondly I question if the old board were actually trying to sell the club. Publically there have been approaches (Wray’s being the last we know of) but nothing has happened. I don’t believe that if the Board had been seriously wishing to sell that progress would not have been made, and regardless this still would have required shareholder (Carson) approval.


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